IT Deal Activity Rebounds: Q2 Wins Surge 26% Amid AI-Led Demand Pickup

• India's leading software services companies posted a 26% year-on-year increase in total contract value (TCV) in the September 2025 quarter, signaling a recovery in deal signings.
• Analysts expect the uptrend in IT deal activity to strengthen over the next two years, driven by increased enterprise spending on AI-led transformation projects.
• Project delays likely bottomed out in Q1, with management commentary across major IT vendors now pointing to improving deal traction.
• HCLTech led the recovery in deal wins, while Infosys, Mphasis, and LTIMindtree reported softer numbers.
• AI-centric and AI-native deals are expected to emerge as meaningful revenue drivers from FY27, potentially offsetting trimming of some legacy services.

Why It Matters: IT deal rebound and AI-led projects signal future growth for the tech industry.